electricity distribution network companies in slovenia · elektro energija (gen-i) 552 16.7% e3...

ELECTRICITY DISTRIBUTION NETWORK COMPANIES IN SLOVENIA

October 2018

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2

INDUSTRY

SLOVENE ELECTRICITY BALANCE in GWh

Production Distribution Consumption

Nuclear (1/2 SLO): 2,983 Direct users of transmission system: 182

Nuclear (1/2 HRV): 2,983 Export of Nuclear (1/2 HRV): 2,983

Thermal: 3,918 Export: 6,575

Hydro: 3,453 Pumping Hydro (ČE Avče): 365

Pumping Hydro (ČE Avče): 271 Losses on transmission system: 378

Cogeneration: 344 Elektro Ljubljana: 4,194 110-kV: 480

Import: 9,133 Elektro Maribor: 2,051 1-35-kV: 5,312

Elektro Celje: 1,923 Other on 0.4 kV: 3,998

Elektro Primorska: 1,556 Households: 3,327

Elektro Gorenjska: 978

Closed systems: 1,900

Production on distribution system: 975 Losses on distribution system: 501

Production on closed distribution systems: 57 Losses on closed distribution systems: 14

Source: The Energy Agency3

ELECTRICITY DISTRIBUTION GRID

4

INDUSTRY

Source: ELES

COMPANY TEASERS:

Elektro Ljubljana

Elektro Maribor

Elektro Celje

Elektro Primorska

Elektro Gorenjska

INDUSTRY

DISTRIBUTION COMPANIES DYNAMIC AND COMPARISON

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2008 2010 2012 2014 2016

ROE in %

Ljubljana

Primorska

Maribor

Gorenjska

Celje

239

1.040

628

823

404

Ljubljana Celje Maribor Primorska Gorenjska

Revenue per customer

403

244262 254

290

Ljubljana Celje Maribor Primorska Gorenjska

Customer per employee

-25

-20

-15

-10

-5

0

5

10

15

20

25

2008 2010 2012 2014 2016

EBITDA-CAPEX

Ljubljana

Primorska

Maribor

Gorenjska

Celje

Source: Annual reports; Consolidated data (except Elektro Ljubljana 2017)5

INDUSTRY

ELECTRICITY RETAIL MARKET IN SLOVENIA

Retail market 1H17 GWh %

Gen-I 2,724 20.1%

ECE (Elektro Celje) 2,720 20.0%

Energija Plus (Elektro Maribor) 1,537 11.3%

Petrol (+ Petrol Energetika) 1,492 11.0%

E3 (Elektro Primorska) 1,263 9.3%

Elektro energija (Gen-I) 1,249 9.2%

Talum 1,208 8.9%

HEP 629 4.6%

Acroni 358 2.6%

Other 390 2.9%

TOTAL 13,569 100.0%

Business segment 1H17 GWh %

ECE (Elektro Celje) 2,099 20.4%

Gen-I 1,978 19.3%

Petrol (+ Petrol Energetika) 1,234 12.0%

Talum 1,208 11.8%

Energija Plus (Elektro Maribor) 1,031 10.0%

E3 (Elektro Primorska) 746 7.3%

Elektro energija (Gen-I) 697 6.8%

HEP 629 6.1%

Acroni 358 3.5%

Other 287 2.8%

TOTAL 10,266 100.0%

Household segment 1H17 GWh %

Gen-I 746 22.6%

ECE (Elektro Celje) 621 18.8%

Elektro energija (Gen-I) 552 16.7%

E3 (Elektro Primorska) 517 15.7%

Energija Plus (Elektro Maribor) 507 15.3%

Petrol 238 7.2%

Other 124 3.7%

TOTAL 3,303 100.0%

▪ Relatively concentrated market with HHI index at 1.281 at end of 2017.▪ Please note that Elektro Energija was previously owned by Elektro Ljubljana, but divested in December 2016

to Gen-I, which now holds a majority market share.▪ ECE us a joint venture of Elektro Celje and Elektro Gorenjska from October 2015 onwards.▪ Market entails 107,463 business users and 842.484 of households users (on open distribution systems).▪ In 2017 69,130 users changed its supplier, out of which 56,679 household users.▪ Electricity split between renewable, nuclear and fossil fuel is 30%:40%:30%.

Source: The Energy Agency

6

PRESENTATION OF INDIVIDUAL ELECTRICITY DISTRIBUTION COMPANIES

October 2018

TEASER

ELEKTRO LJUBLJANA

8BACK

ELEKTRO LJUBLJANA

ELEKTRO LJUBLJANA

▪ Has the biggest distribution network in Slovenia with infrastructureproviding electricity power to capital city Ljubljana and its surroundings.

▪ It generated EUR 14m of profit in 2017, the most vs domestic peers.▪ In 2016 it merged its daughter company Elektro Energija, purchasing

and selling electricity, to Gen-I. This limits historic comparability.▪ As of 2017 it provided close to 28,000 free chargers to electric car users,

which makes them the leading provider of charging infrastructure forelectric cars in Slovenia (marketed under the brand Gremo na elektriko– Driven by Electricity). In addition it has lunched first mobileapplication for use of charging stations.

▪ Through its subsidiary it owns:▪ 10 small hydro power plants with production capacity 2,5 MWh;▪ 19 solar power stations with total production capacity 750 kWh.

▪ SODO (Electricity Distribution System Operator) plan mentions 2.4%expected CAGR in 2016-2026 period regarding the electricity growth.

Ownerhip Structure ELOG

Republic of Slovenia 79.5%

Adriatic Slovenica d.d. 3.9%

Triglav Vzajemni Skladi 2.7%

G.I. Dakota Investments Limited 1.7%

KD Group d.d. 1.5%

Source: Gremonaelektriko; Elektro Ljubljana 2017 Annual report

Map of charging stations in Slovenia, Croatia and Italy

KEY DATA

Number of customers 338,525

Network size (km) 17,583

high voltage 310

medium voltage 5,675

low voltage 11,598

Number of transformer stations 5,511

Number of distribution transformer stations 29

Distributed Electricity (MWh) 4,187,398

9BACK

BACK

ELEKTRO LJUBLJANA

ELEKTRO LJUBLJANA IN NUMBERS

Period 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Du-pont

Net profit margin 0.1% 0.4% 0.4% 1.4% 1.5% 1.9% 0.9% 3.3% 7.5% 17.3%

Assets Turnover 0.59 0.59 0.56 0.87 1.09 0.98 1.07 0.84 0.45 0.17

ROA 0.0% 0.2% 0.2% 1.3% 1.7% 1.9% 1.0% 2.8% 3.4% 2.9%

Equity multiplier 1.71 1.84 1.86 1.91 1.90 1.88 1.84 1.76 1.55 1.56

ROE 0.1% 0.4% 0.5% 2.4% 3.2% 3.6% 1.7% 4.9% 5.2% 4.5%

Margins

EBITDA margin 11.7% 9.4% 11.1% 8.7% 6.7% 7.9% 6.7% 10.9% 22.6% 53.3%

EBIT margin 2.9% 0.8% 1.7% 2.4% 1.8% 2.8% 1.7% 4.6% 9.5% 20.9%

in EURm

Sales 263.9 282.9 271.9 448.5 569.7 518.6 561.1 438.0 211.3 80.8

Net income 0.2 1.2 1.2 6.4 8.8 10.1 5.0 14.5 15.9 14.0

EBITDA 30.8 26.7 30.2 39.0 38.0 40.9 37.8 47.6 47.7 43.0

Net debt 75.0 95.5 123.5 113.6 108.9 103.5 97.5 91.7 92.5 78.9

Equity 260.6 261.8 263.0 268.8 275.6 283.3 285.8 294.8 304.1 307.9

Assets 446.2 480.5 488.1 514.7 524.7 531.3 525.4 518.7 472.8 480.4

Debt/Equity ratio 0.29 0.37 0.47 0.46 0.43 0.40 0.37 0.35 0.31 0.28

Debt/Assets ratio 0.17 0.20 0.25 0.24 0.23 0.22 0.20 0.20 0.20 0.18

Net debt / EBITDA 2.43 3.58 4.10 2.91 2.86 2.53 2.58 1.93 1.94 1.83

CAPEX 45.5 47.5 25.0 22.3 24.4 26.4 31.5 28.1 33.7 32.9

EUR per Share

BV per share 6.7 6.7 6.7 6.9 7.0 7.2 7.3 7.5 7.8 7.9

Dividend 0 0 0.016 0.056 0.061 0.06 0.141 0.17 0.13 0.12

Headcount 1018 1028 984 964 956 955 947 942 925 841

Revenue per employee 259,264 275,175 276,333 465,247 595,900 543,013 592,477 465,019 228,396 96,020

Customers 320,639 323,997 326,520 327,689 329,622 330,971 333,264 334,697 336,417 338,525

Revenue per customer 823 873 833 1,369 1,728 1,567 1,684 1,309 628 239

Customer per employee 315 315 332 340 345 347 352 355 364 403

MWh (distribution) 4,136,255 4,036,156 4,169,039 4,115,822 4,041,483 3,892,550 3,874,370 3,971,144 4,041,483 4,187,398

Source: Annual reports; Consolidated data10

TEASER

ELEKTRO MARIBOR

11BACK

ELEKTRO MARIBOR

ELEKTRO MARIBOR

▪ Group entails daughter companies (100% ownership):▪ Energija plus d.o.o., which focuses on trading of energy products

(electricity and gas). It had 11.3% market share in Slovenia in 2017regarding electricity and with it, 3rd place. In terms of gas it had a1.2% market share and is found on 12th place. However in 2017 gassales exceeded 50% growth.

▪ OVEN Elektro Maribor d.o.o., which produces electricity. It has 4 smallhydroelectric power plants, one medium hydroelectric power plantand 18 small photovoltaic power plants with total production in 2017amounting to 11,312 MWh.


▪ 65% of the users have advanced measuring units, while Elektro Mariboris also upgrading its underground network.

Ownerhip Structure EMAG


Pivovarna Laško Union d.o.o. 5.7%

Ampelus Holding Limited 3.3%

Kapitalska družba d.d 1.6%

Collis plus d.o.o. 0.9%

KEY DATA



high voltage 240


low voltage 12,229




Source: Elektro Maribor 2017 Annual report

24,3

20,8

23,825,5

29,430,7

34,9 34,9

38,035,5

1,5 1,43,9 4,6

8,9 9,311,5 11,7

15,1

11,7

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA and profit in EURm

12BACK

BACK

ELEKTRO MARIBOR

ELEKTRO MARIBOR IN NUMBERS

Period 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Du-pont


Assets Turnover 0.56 0.57 0.57 0.51 0.49 0.45 0.44 0.40 0.39 0.35

ROA 0.5% 0.4% 1.1% 1.3% 2.6% 2.7% 3.2% 3.2% 4.0% 3.0%


ROE 0.7% 0.6% 1.7% 2.0% 3.7% 3.8% 4.5% 4.5% 5.6% 4.2%

Margins

EBITDA margin 13.4% 11.2% 12.4% 14.6% 17.3% 19.5% 22.2% 23.4% 25.7% 26.0%

EBIT margin 1.6% -0.6% 1.9% 2.4% 5.0% 5.5% 8.5% 9.3% 11.4% 10.4%

in EURm

Sales 181.3 185.0 192.6 174.6 170.3 157.3 157.0 149.2 148.0 136.3

Net income 1.5 1.4 3.9 4.6 8.9 9.3 11.5 11.7 15.1 11.7

EBITDA 24.3 20.8 23.8 25.5 29.4 30.7 34.9 34.9 38.0 35.5

Net debt 11.1 18.8 27.5 27.4 23.6 21.0 17.2 19.3 21.5 24.5

Equity 222.6 224.0 227.9 233.6 238.7 245.0 253.5 260.8 269.5 276.9

Assets 321.4 325.8 339.7 344.1 346.6 349.9 358.9 369.4 381.7 390.5



Net debt / EBITDA 0.46 0.91 1.15 1.07 0.80 0.68 0.49 0.55 0.57 0.69

CAPEX 31.8 21.3 27.1 23.3 19.6 23.3 24.8 27.6 28.6 29.5

EUR per Share

BV per share 6.6 6.7 6.8 7.0 7.1 7.3 7.6 7.8 8.0 8.3

Dividend 0.03 0 0 0.036 0.11 0.09 0.14 0.18 0.12 0.13

Headcount 837 821 819 821 823 830 831 842 828 827


Customers 201,297 201,935 200,761 210,434 213,425 214,052 214,441 214,441 216,292 216,981

Revenue per customer 901 916 959 830 798 735 732 696 684 628




TEASER

ELEKTRO CELJE

14BACK

12,0%10,3%

20,8%18,4% 17,9% 17,9%

23,6%

19,4%16,9% 17,0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA margin

ELEKTRO CELJE

ELEKTRO CELJE D.D.

▪ Has distribution network covering 4.345 km2 , extending over 40municipalities or 22% of Slovenian territory.

▪ ECE d.o.o., which is co-owned by Elektro Celje (74.3%) and ElektroGorenjska (25.7%), is the 2nd largest electricity supplier on Slovenianretail market with 20.0% market share in 2017. It also has a 1.0% marketshare on retail gas market in Slovenia. ECE generated EUR 128.3m ofrevenues in 2017 with profit at EUR 2.0m and with equity of EUR 18.2m.

▪ Through 100% ownership in MHE-ELPRO d.o.o., it is the owner of:▪ 4 small hydropower plants ( 2017: 2,053,444 kWh);▪ 10 small photovoltaic power plants (2017: 442,650 kWh);▪ 7 charging stations for electrical cars.▪ Various cogeneration systems on office buildings in the region (2017:

electricity 374, 047 kWh and heat 1,462,690 kWh).▪ Strategic aim is to have return on assets above 3.3% and EBITDA margin

above 42%. SODO plan mentions 2.4% expected CAGR in 2016-2026period regarding the electricity growth.

Ownerhip Structure ECEG


Global Broker - Diler AD - Fid 2.0%

Ampelus Holding Limited 1.9%


Collis plus d.o.o. 1.7%

KEY DATA



high voltage 91


low voltage 13,800




Source: Elektro Celje 2017 Annual report, Energetika-portal, ECE Annual Report 2017

15.4% 14.5%

23.6% 19.2%* 20.0%*

2013 2014 2015 2016 2017

ECE market share in Slovenia

* Changed methodology

15BACK

BACK

ELEKTRO CELJE

ELEKTRO CELJE IN NUMBERS

Period 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Du-pont

Net profit margin 1.0% -1.1% 6.5% 4.8% 4.7% 4.2% 7.6% 6.3% 5.7% 5.2%

Assets Turnover 0.65 0.60 0.46 0.52 0.52 0.55 0.49 0.52 0.58 0.56

ROA 0.6% -0.7% 3.0% 2.5% 2.5% 2.3% 3.8% 3.3% 3.3% 2.9%


ROE 0.9% -1.0% 4.5% 3.7% 3.7% 3.5% 5.5% 4.9% 4.8% 4.3%

Margins

EBITDA margin 12.0% 10.3% 20.8% 18.4% 17.9% 17.9% 23.6% 19.4% 16.9% 17.0%

EBIT margin 1.4% -1.3% 6.5% 5.9% 5.2% 5.6% 8.8% 7.5% 6.1% 6.4%

in EURm

Sales 158.0 151.4 122.1 139.2 145.8 156.5 140.4 162.4 182.1 178.1

Net income 1.5 -1.7 7.9 6.7 6.9 6.6 10.7 10.2 10.3 9.3

EBITDA 19.0 15.5 25.4 25.6 26.1 28.1 33.2 31.6 30.7 30.3

Net debt 18.8 29.2 32.1 34.1 39.0 43.2 41.0 45.6 42.5 36.0

Equity 170.5 168.9 176.7 180.9 185.4 188.5 196.8 207.6 213.3 215.0

Assets 242.0 254.2 265.0 268.4 277.8 283.7 285.7 312.2 314.3 318.1



Net debt / EBITDA 0.99 1.88 1.27 1.34 1.50 1.54 1.24 1.44 1.38 1.19

CAPEX 33.7 26.2 22.2 22.5 24.5 21.5 23.1 21.8 20.1 22.1

EUR per Share

BV per share 7.0 7.0 7.3 7.5 7.7 7.8 8.1 8.6 8.8 8.9

Dividend 0 0 0.10 0.10 0.15 0.10 0.13 0.13 0.11 0.13

Headcount 722 717 713 636 680 678 680 678 717 702


Customers 164,356 164,828 165,667 167,402 168,445 168,865 169,414 168,865 170,688 171,340

Revenue per customer 961 918 737 831 866 927 829 962 1,067 1,040




TEASER

ELEKTRO PRIMORSKA

17BACK

14,1%

10,9%12,7% 12,3% 12,5%

18,7%20,0% 19,1%

21,6%

18,9%

3,0%

0,3%1,6% 1,0% 1,5%

5,3%

1,5%

4,7% 5,1% 4,6%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA margin and ROE

EBITDA margin

ROE

ELEKTRO PRIMORSKA

ELEKTRO PRIMORSKA D.D.

▪ Its distribution network passes over West Slovenia and consequentlysome small sales is generated also in Italy (90,019 MWH of electricity in2017).

▪ E3 d.o.o., its subsidiary, trades and produces electricity.▪ Namely E3 also holds a 47.27% stake in Knešca d.o.o. a small hydro

power plant located in Most na Soči.▪ In 2017 E3 produced 7,150 MWh of electricity and 14,774 MWh of

heat.▪ E3 had a 9.3% retail electricity market share in Slovenia in 2017 while it

achieved the most prominent YoY market share growth in 2017 vsother peers, especially regarding household users.


▪ Is involved in several e-mobility projects.

Ownerhip Structure EPRG


Zavarovalnica Triglav d.d. 6.0%

Hotel Mrak d.o.o. 2.7%



KEY DATA



high voltage 2,130

medium voltage 600

low voltage 5,534




Source: Elektro Primorska 2017 Annual report

7.8%7.1%

7.3%

8.0%*

9.3%*

2013 2014 2015 2016 2017

E3 market share in Slovenia

* Changed methodology

18BACK

BACK

ELEKTRO PRIMORSKA

ELEKTRO PRIMORSKA IN NUMBERS

Period 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Du-pont


Assets Turnover 0.65 0.59 0.58 0.58 0.59 0.52 0.44 0.46 0.46 0.48

ROA 2.0% 0.2% 1.1% 0.6% 1.0% 3.4% 1.0% 3.2% 3.5% 3.2%


ROE 3.0% 0.3% 1.6% 1.0% 1.5% 5.3% 1.5% 4.7% 5.1% 4.6%

Margins

EBITDA margin 14.1% 10.9% 12.7% 12.3% 12.5% 18.7% 20.0% 19.1% 21.6% 18.9%

EBIT margin 5.0% 0.6% 1.6% 2.1% 2.2% 7.7% 5.7% 6.6% 9.0% 7.4%

in EURm

Sales 134.5 124.4 117.9 125.4 123.8 114.1 92.6 100.2 102.1 109.9

Net income 4.1 0.3 2.2 1.4 2.0 7.5 2.2 7.1 7.8 7.3

EBITDA 19.0 13.5 14.9 15.4 15.5 21.4 18.5 19.2 22.1 20.8

Net debt 25.7 24.0 29.9 30.4 28.6 26.3 28.3 15.4 26.9 25.4

Equity 135.4 130.5 132.7 135.0 136.3 142.5 145.2 148.7 153.3 158.7

Assets 207.0 209.7 204.3 214.4 210.1 217.7 210.7 217.7 220.6 231.3



Net debt / EBITDA 1.35 1.78 2.00 1.98 1.85 1.23 1.53 0.80 1.22 1.22

CAPEX 18.0 18.5 13.7 13.6 11.0 11.0 13.1 14.0 15.6 16.3

EUR per Share

BV per share 7.2 6.9 7.0 7.2 7.2 7.6 7.7 7.9 8.1 8.4

Dividend 0 0 0.053 0.04 0.07 0.07 0.079 0.17 0.11 0.13

Headcount 510 521 515 489 470 475 477 513 518 527


Customers 124,788 127,817 129,425 130,039 130,539 131,044 131,408 132,066 132,849 133,598

Revenue per customer 1,078 973 911 964 948 871 704 759 768 823


MWh (distribution) n.a. 1,616,278 n.a. 1,620,546 1,606,393 1,570,497 1,531,516 1,510,000 1,558,825 1,612,597


TEASER

ELEKTRO GORENJSKA

20BACK

ELEKTRO GORENJSKA

ELEKTRO GORENJSKA D.D.

▪ It has a robust network located in NorthWest Slovenia. Namelyunderground share of network is highest in Slovenia with 73% share(medium voltage 63%, low voltage 83%) which insures reliability.

▪ Their aim is to have only advanced / digitalized readings from users by2021, more than half already installed.

▪ The parent company has a 25.67% share in ECE, which purchases, sellsand trades electricity on the Slovene market. ECE has 20.0% marketshare on the retail electricity market in Slovenia (2nd place).

▪ Its daughter company Gorenjske Elektrarne produces electricity. In 2017it produced 52,099 MWH of electrical energy through 15 hydro powerplants (majority of produced electricity), 19 solar power plants and 5 co-generation units.


Ownerhip Structure EGKG



Sava RE d.d. 1.6%

Pivovarna Laško Union d.o.o. 1.6%

BAU 1 d.o.o. 1.6%

KEY DATA



high voltage 106


low voltage 3,318




Source: Elektro Gorenjska 2017 Annual report

13,612,0

16,3

13,5 13,0

17,017,9

17,0

19,6 20,0

1,7 1,2

4,3

1,70,2

4,75,5

7,2 7,2 7,0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EBITDA and profit in EURm

21BACK

BACK

ELEKTRO GORENJSKA

ELEKTRO GORENJSKA IN NUMBERS

Period 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Du-pont


Assets Turnover 0.52 0.47 0.50 0.41 0.42 0.42 0.38 0.15 0.16 0.16

ROA 0.9% 0.6% 2.1% 0.8% 0.1% 2.1% 2.5% 3.1% 3.2% 3.0%


ROE 1.3% 0.9% 3.1% 1.2% 0.2% 3.4% 3.9% 5.0% 4.8% 4.5%

Margins

EBITDA margin 14.0% 12.8% 15.9% 16.2% 15.0% 18.3% 21.3% 48.0% 55.5% 55.4%

EBIT margin 3.1% 1.7% 5.1% 3.2% 1.6% 6.8% 8.8% 18.8% 24.3% 23.2%

in EURm

Sales 97.1 93.6 102.9 83.3 86.8 92.6 83.9 35.4 35.3 36.1

Net income 1.7 1.2 4.3 1.7 0.2 4.7 5.5 7.2 7.2 7.0

EBITDA 13.6 12.0 16.3 13.5 13.0 17.0 17.9 17.0 19.6 20.0

Net debt 22.7 26.0 28.9 33.6 40.2 38.6 38.2 43.7 45.7 44.8

Equity 131.1 132.2 136.1 135.7 133.4 136.0 139.8 145.1 149.6 155.0

Assets 188.2 197.4 203.8 201.6 204.9 219.4 218.6 231.8 222.1 232.0



Net debt / EBITDA 1.67 2.17 1.77 2.49 3.10 2.28 2.14 2.57 2.33 2.24

CAPEX 18.4 18.9 15.2 16.8 16.0 17.2 14.8 18.3 18.8 17.0

EUR per Share

BV per share 7.6 7.6 7.9 7.8 7.7 7.9 8.1 8.4 8.7 9.0

Dividend 0 0 0.07 0.08 0.08 0.08 0.12 0.166 0.12 0.14

Headcount 354 356 347 333 334 338 342 309 307 308


Customers 85,279 86,128 86,874 87,727 88,205 83,101 88,347 88,610 88,911 89,361

Revenue per customer 1,138 1,087 1,184 950 984 1,114 950 400 397 404


MWh (distribution) 1,027,741 952,021 999,114 1,002,762 982,417 992,370 1,000,918 1,042,193 1,068,347 1,103,725


INDUSTRY VALUATION DATA

August 2018

BACK

INDUSTRY VALUATIONS

PEER GROUP

Source: Bloomberg, Annual reports; Consolidated data, Own calculations24

PEER GROUP:▪ Romande Energie Holding SA▪ Iren SpA▪ ELMU NyRt▪ EMASZ Rt▪ Electricite de Strasbourg SA▪ REN - Redes Energeticas Nacionais SGPS SA▪ Centralschweizerische Kraftwerke AG▪ Transelectrica SA▪ CEZ Distribution Bulgaria

▪ European Utilities, which have more exposure on electricitydistribution network revenues (and not only production, transmissionnetwork etc.).

▪ Most peer companies also have a majority owner, sometimessovereign, which results in lack of control and lack of liquidity.

Du-pont PEER average Elektro average

Net profit margin 10.8% 11.4%

Assets Turnover 0.45 0.34

ROA 4.1% 3.0%

Equity multiplier 1.56 1.48

ROE 8.7% 4.4%

Margins

EBITDA margin 30.2% 34.1%

EBIT margin 17.1% 13.6%

Net profit margin 10.8% 11.4%

Peer Multiples

EV/Sales 2.0x

EV/EBITDA 6.5x

EV/EBIT 14.3x

P/E 20.2x

P/B 1.16x

BACK

INDUSTRY VALUATIONS

TRANSACTION DATA

Source: Bloomberg, Annual reports; Reuters25

▪ Relatively similar transactions in the last few years (in EURm):

Target Buyer PriceEV/

SalesEV/

EBITDAEV/EBIT

P/E P/B

Public Holding Company ADMIE (IPTO)

China State Grid 24% 1,038 6.9 11.2 19.3 neg. 1.2

REN China State Grid 25% 1,480 4.3 8.2 13.5 12.3 1.4

Elenia GroupAllianz Capital Partners, Macquarie Infrastructure and Real Assets, The State Pension Fund

100% 1,661 10.6 19.2 35.4 38.6 neg.

50Hertz Transmission GmbH Elia System Operator 20% 4,883 6.6 35.6 38.1 3.8

Fortum Espoo Distribution Oy Suomi Power Networks Oy 100% 2,550 7.9 16.6 25.2

BACK

INDUSTRY VALUATIONS

BROAD INDUSTRY MARKET DATA

Source: Bloomberg, EY26

▪ Trading multiples data from EY „Power and trendsQ1 2018“ show:

▪ 9.4x Forward EV/EBITDA multiple in 1Q18for Transmission & Distribution in Europe;

▪ vs historical 2013-2014 multiple of 10.7x.

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18

EV/EBITDA (x)

EV/EBITDA - FY1 (x)

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

16,0

18,0

1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18

P/E (x)

P/E - FY1 (x)

▪ Bloomberg Europe Utility Network valuation Peers data:

00%

05%

10%

15%

20%

25%

0,0

0,5

1,0

1,5

2,0

2,5

3,0

1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18

P/Book (x)

ROE in %

CONTACTS

27

ALTA INVEST

EXECUTIVE

DIRECTORSMatjaž Albreht Igor Taljat

Executive director

ALTA Invest d.d.

Executive director

ALTA Invest d.d.

+386 1 32 00 300 +386 1 32 00 300

[email protected] [email protected]

RESEARCH

DEPARTMENT

Sašo Stanovnik

Head of Research

ALTA Invest d.d.

+386 1 32 00 310

[email protected]

CORPORATE

FINANCE

Jasna Brdnik

Director of Projects

ALTA Skupina d.d.

+386 1 32 00 334

[email protected]